The Dow Jones Index plummeted by approximately 4000 points last week, sparking widespread global panic, following President Donald Trump’s “Liberation Day” announcements. Social media platforms were flooded with anxious comments from individuals on both sides of the political spectrum, with leftists expressing both panic and excitement, as they believe a market crash will garner public support for their cause. The thing is, the market, which has been overdue for a correction, is finally facing reality, and it’s about time – this necessary adjustment should have occurred years ago. Critics of Trump’s tariff policies are misinformed, as they mistakenly believe the stock market and globalism are crucial, when in fact, they are not. The implementation of tariffs and the demise of globalism are inevitable and necessary outcomes.
Federal Reserve and previous administrations destroyed the US Economy
On social media, critics from both sides are claiming that Trump is inadvertently destroying the US economy as an act of revenge against foreign trading partners, who are taking advantage of the US. However, it is impossible for Trump to destroy an economy that was already in shambles due to the actions of the Federal Reserve and previous administrations over the past two decades. The economy was in a dire state when Biden left office, and the only change now is that stocks are no longer being artificially propped up.
Since the 2008 crash, the central bank has consistently intervened to prevent a natural market correction, printing tens of trillions of dollars in fiat currency and injecting it into banks and international corporations, thereby temporarily delaying the inevitable. This manipulation has been the norm, and it’s time for a change. The current market turmoil is a direct result of the market’s attempt to correct itself, and it’s essential to let it run its course, rather than relying on artificial interventions. The end of globalism and the implementation of tariffs are not only necessary but also long overdue, and they will ultimately lead to a more stable and secure economic future.
Furthermore, the notion that Trump is destroying the economy is a misconception, as the economy was already on a downward spiral. The current administration’s policies are merely exposing the underlying issues that were previously masked by artificial market manipulation. It’s time to face the reality of the situation and acknowledge that the stock market and globalism are not the pillars of a strong economy. The focus should be on creating a stable and secure economic foundation, rather than relying on fleeting market trends and artificial interventions. The current market turmoil is a wake-up call, and it’s time to take a closer look at the underlying issues that have been plaguing the economy for decades. The implementation of tariffs and the demise of globalism are not the causes of the economic downturn, but rather a necessary step towards creating a more stable and secure economic future. It’s time to let the market correct itself and focus on building a strong economic foundation, rather than relying on artificial manipulations and fleeting market trends.
Stocks are not a reliable indicator of economic health
The Dow Jones has experienced an unprecedented surge of over 15,000 points in less than four years since the initial COVID-19 crash in 2020, primarily driven by stimulus programs and inflation triggered by the Federal Reserve. These gains are directly linked to the Fed’s actions, which have been funnelling money into the stock market through the Yen carry trade and stock buybacks, among other channels. As a result, the stock market has been artificially inflated, creating a condition of perpetual gains. However, this bubble is now on the verge of bursting, as the economy is grappling with stagflation, which is slowly devastating America. The fact that the stock market cannot sustain itself without a constant influx of fiat money raises questions about its legitimacy. To restore some semblance of reality to the market, the Dow Jones would need to plummet by at least another 10,000 points, and even that might be a generous estimate. Some degree of deflation is necessary to make the market more affordable and genuine. An economy built on inflation, illusion, and willful ignorance is a ticking time bomb waiting to unleash its fury.
Stocks are not a reliable indicator of economic health, and history has shown that they often lag behind, signalling problems that should have been addressed long ago. In almost every major stock market crash, including the infamous 1929 crash, there were clear warning signs that the economy was in decline, but these signals were ignored. If investors have been waiting for a crash to sound the alarm on the nation’s financial health, they have been oblivious to the obvious. Stocks are, in fact, a trailing indicator of deeper issues that should have been noticed and addressed long ago.
The Fed created a false sense of security in the stock market
The majority of Americans do not have a vested interest in the stock market, as the wealthiest 10% of the population owns a staggering 93% of all stocks. Only 21% of American families hold shares directly, while another 40% have indirect holdings through retirement programs, but these are relatively insignificant. The average person does not have a stake in the stock market, and therefore, does not care about its fluctuations. The notion that stock indexes are a reliable indicator of economic stability is a misconception. The people who are most invested in the stock market, including global corporations and banks, are the ones who benefit most from government and central bank interference. Those who are sounding the alarm about tariffs and the market are often individuals with large investments or a political agenda. The argument that everyone should care about stocks because company valuations affect employment is flawed, as it assumes that companies would not have laid off employees anyway. Both deflation and inflation can lead to job losses, as evident from recent years. Artificially inflated stocks are not a safeguard against mass layoffs.
The Federal Reserve’s actions have created a false sense of security in the stock market, and it is essential to acknowledge the risks of this artificially inflated economy. The consequences of this recklessness will be severe, and it is crucial to take a closer look at the nation’s financial health before it’s too late. The stock market’s detachment from reality is a warning sign that should not be ignored, and it is time to reevaluate the true state of the economy. The fate of the American economy hangs in the balance, and it is imperative to address the underlying issues rather than relying on artificial props to sustain the stock market.
Tariffs are explicitly imposed on global corporations, not the general public
Tariffs are explicitly imposed on global corporations, not on the general public, as they are a tax on the foreign goods these corporations’ import. It is imperative to acknowledge that some individuals are mistakenly defending the interests of international conglomerates, as if they are the victims. Notably, certain libertarians are incorrectly arguing that tariffs are “unconstitutional” because they allegedly represent taxation without representation. However, this assertion is fundamentally flawed. Tariffs do not constitute a tax on the citizenry or foreign economies; instead, they are a deliberate tax on global corporations and the foreign goods they import.
It is crucial to recognize that corporations are, in fact, socialist constructs that exist solely due to government charters and special protections. The market bailouts serve as a prime example of how corporations, which should have been allowed to fail, were kept alive due to their partnership with the government. As a result, these corporations are being taxed for importing foreign goods and exporting American jobs, which is a positive development. To avoid this tax, corporations can simply bring manufacturing and jobs back to the United States, and they do have options. Moreover, Americans have the alternative of purchasing from smaller, locally sourced producers to avoid price increases. Consequently, the playing field, which previously gave international companies an unfair advantage, is now more level, and competition is being restored. This, in fact, is a genuine free market, in stark contrast to the current system.
Tariffs hold global corporations accountable for their actions
Furthermore, it is essential to emphasize that tariffs are a deliberate measure to hold global corporations accountable for their actions. By imposing tariffs, the government is, in effect, taxing these corporations for their practices, which have a direct impact on the American economy and workforce. This approach is not only justified but also necessary to create a more equitable and competitive market. Ultimately, the imposition of tariffs on global corporations is a critical step towards restoring a free market economy, where competition is fair, and American jobs are protected.
Globalism’s Inevitability is a Myth
Critics of tariffs are loudly proclaiming that this approach is a blunt instrument in the fight against globalism, with many parroting the phrase: “Trump is wielding an ax when a scalpel is required.” However, this discussion should not be centered around Trump, so let’s set him aside for now. Instead, let’s examine the true nature of globalism: a system that purports to benefit humanity while secretly draining wealth from the middle class and funneling it into the coffers of a minuscule elite. Globalism is, in essence, a machine designed to transfer wealth and property, resulting in a historic wealth gap that has placed 30% of the world’s wealth in the hands of a mere 1% of the population. Meanwhile, the bottom 50% of the population holds a paltry 2.6% of global wealth, and this disparity is only worsening. The notion of “free trade” and interdependent supply chains has created a system where nations are weakened by their reliance on other countries for essential resources and basic necessities, making it difficult for them to withdraw. Achieving freedom from globalism necessitates isolation from these established supply chains. Those who argue that tariffs are an attack on our allies and trading partners are misguided. Many of these countries are not, in fact, our allies. Europe, in particular, is becoming increasingly totalitarian, imprisoning individuals for online speech and jailing political opponents who oppose mass immigration. Why should we maintain alliances or trade relationships with nations that would gladly destroy the values we hold dear?
The American consumer been reduced to a cash cow
Moreover, why has the American consumer been reduced to a cash cow for the rest of the world? Why do other countries rely so heavily on the United States to purchase their products? The prevailing narrative suggests that Americans must continue to consume foreign exports and remain loyal paymasters, or risk being accused of declaring war. This is a flawed argument. If tariffs are indeed ineffective or destructive, then why do numerous countries impose tariffs on American goods? They are allowed to maintain a trade balance, but the United States is not?
Globalism is a Cancer that Must be Eradicated
Critics are genuinely afraid of the demise of globalism, not because they have a deep affection for the ideology, but because they are addicted to the meagre comforts it provides. They are aware that independence and self-sufficiency require a painful process of detoxification. Globalism is a cancer that is plaguing our world, and it is imperative that we take decisive action to eradicate it. If we fail to do so, we will suffer the consequences for decades to come, and our children will grow up without experiencing the true meaning of prosperity.
Written By Tatenda Belle Panashe
